China Information Technology, Inc. (CNIT, quote) has announced a one-for-two reverse stock split of the company’s authorized and issued and outstanding common stock, to be effective at market opening today. The stock will continue to trade under the symbol CNIT on a split-adjusted basis.
CNIT is implementing the reverse stock split to regain compliance with NASDAQ listing requirements. Share prices had plummeted following the abrupt departure of the company’s CFO in May 2011, and in December the company received a warning from the NASDAQ that its shares had traded below $1.00 for a thirty day business period.
The company appointed a new CFO on December 13, but its shares have continued to trade below $1.00 in 2012. The company had until June 20 to regain compliance by demonstrating a closing bid price of $1.00 or more for ten consecutive business days, a problem that seems to be solved by the reverse split.
CNIT is headquartered in Shenzhen, China. It specializes in geographic information systems, digital public security technology, and hospital information systems, as well as high-end digital display products.